WASHINGTON, Sep 13, 2006 (BUSINESS WIRE) — Liquidity Services, Inc. (LSI), a leading online auction
marketplace for wholesale, surplus and salvage assets, today announced
its joint effort with the U.S. Department of Defense (DoD) to
strengthen inventory assurance and control procedures related to the
sale of DoD surplus property. The joint initiative expands LSI’s scope
of work under its Commercial Venture II (CV-II) contract (the Surplus
Contract) with the Defense Reutilization and Marketing Service (DRMS)
and leverages LSI’s technology and surplus property domain expertise.
Through a modification to LSI’s existing Surplus Contract with the
DoD, LSI will assist the DRMS in establishing new centralized
controlled property centers (CPC’s) in the U.S. LSI will support DRMS
through the development and implementation of customized inventory
inspection and tracking procedures designed to mitigate risks related
to the sale of surplus DoD property to the public.
Effective December 1, 2006, LSI will process selected DoD surplus
property, including Batch Box items, through the CPC’s and provide
DRMS with additional information following the breakdown and
inspection of these items. LSI will support DRMS in checking all
incoming inventory against a DoD Controlled Property Restricted List
and partner with DRMS in the mission to prevent restricted property
items from being offered for sale to the public.
The modification of the Surplus Contract provides LSI with new
operational performance incentives and disincentives that are tied to
inventory assurance and are measured retroactively at the end of
designated performance periods.
The modification to the Surplus Contract was filed today with the
SEC as an exhibit to a Form 8-K. The terms of the modification, which
are effective immediately, are described in the exhibit. All other
principal terms of the original contract remain in effect.
LSI believes the marginal benefits (excluding potential
incentives) and costs of the modified Surplus contract will offset one
another, resulting in no change to its fiscal year 2007 guidance at
this time. LSI expects to provide updated fiscal year 2007 guidance as
part of its September 30, 2006 quarterly earnings release.
About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ: LQDT) and its subsidiaries
enable corporations and government agencies to market and sell surplus
assets and wholesale goods quickly and conveniently using online
auction marketplaces and value-added services. The company is based in
Washington, D.C. and has 350 employees. Additional information can be
found at: www.liquidityservicesinc.com.
This document contains forward-looking statements made pursuant to
the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements regarding the potential benefits of the
new joint initiative under LSI’s Surplus Contract. The outcome of the
events described in these forward-looking statements is subject to
known and unknown risks, uncertainties and other factors that may
cause our actual results to differ materially from any future results
expressed or implied by these forward-looking statements. You can
identify forward-looking statements by terminology such as “expects,”
or the negative of these terms or other comparable terminology. We
cannot guarantee future results, levels of activity, performance or
achievements. There are a number of risks and uncertainties that could
cause our actual results to differ materially from the forward-looking
statements contained in this document. Important factors that could
cause our actual results to differ materially from those expressed as
forward-looking statements are set forth in the Company’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2006, including,
but not limited to, those set forth in Part II, Item IA (Risk
Factors). There may be other factors of which we are currently unaware
that may cause our actual results to differ materially from the
forward-looking statements. All forward-looking statements apply only
as of the date of this document and are expressly qualified in their
entirety by the cautionary statements included in this document.
Except as may be required by law, we undertake no obligation to
publicly update or revise any forward-looking statement occurring
after the date of this document.
SOURCE: Liquidity Services, Inc.
Liquidity Services, Inc.
James Williams, 202-558-6279